This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ETFs That Give You Foreign Small-Cap Exposure

This column was originally published on RealMoney on May 2 at 1 p.m. EDT. It's being republished as a bonus for readers. For more information about subscribing to RealMoney, please click here .

Usually, new large-cap ETFs seem to come from the redundancy department, but that's not so with small-caps. The thing about the small-cap space is that two funds that appear to do the same thing can be very different, so sometimes the best choice, for diversification's sake, might not be one or the other but both.

Frankly, there is nothing that says you should pick one and just stick to it for all time.

An often overlooked piece of the diversification puzzle is foreign small-cap stocks, primarily because these stocks can be difficult to access. A few months ago, WisdomTree launched the first ETF in the space; the WisdomTree International Small-Cap Dividend ETF (DLS). Last week, StateStreet launched the SPDR S&P International Small-Cap ETF (GWX).

DLS and GWX are different enough that a combination of both stands to be a better mix than one alone. The indices underlying both have strong back-test results: DLS has averaged 17.76% annualized for 10 years, and GWX has averaged 11.25% annualized over the same time period, compared with 8.67% annualized for the MSCI EAFE Index, 8.2% for the S&P 500 and 10.23% for the Russell 2000.

While the results for DLS have been much better, I believe it has benefited from a skew to value during this decade. And while it may be tough to guess when growth will rotate back into favor, a mix of both funds means you don't have to be right about when growth takes the mantle.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HJR $25.42 0.02%
HBC $0.00 0.00%
DLS $59.49 0.00%
GWX $29.42 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs